CIPC Returns – What, How and When?

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CIPC ReturnsWhat is CIPC?

The CIPC (Companies and Intellectual Property Commission) is responsible for the registration of companies, co-operatives and Intellectual Property Rights and the maintenance thereof. Some of the other functions of this commissioning body include; promotion of education and awareness of a company and its intellectual property law, enforcement of relevant legislation, monitoring of compliance with financial reporting standards and making recommendations to the FRSC (Financial Reporting Standards Council). It is also the CIPC’s responsibility to; promote compliance of relevant legislation, license Business rescue practitioners and to disclose information on its business registers.

How do I know if I am meant to pay CIPC Returns?

By law, all companies and close corporations (cc) are required to file their annual returns with CIPC. CIPC needs the information gained from returns to ensure that it is in possession of the latest information of the company or close corporation and to determine whether the company or close corporation is conducting business related activities.

When are my CIPC Returns due?

CIPC Returns are due on the last working day of the month of the anniversary of registration of the company/cc (not a Saturday, Sunday or Public Holiday).
Contact the CIPC here: http://www.cipc.co.za/index.php/contact-us/enquiries/

For any further help, feel free to contact PATC (Professional Accountants and Tax Consultants)

 

 

 

 

 

 


Entrepreneurs – Blogs, people to follow & unlimited inspiration

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 entrepreneurs

So…it’s Monday and your “Sunday Blues” have followed you into the office. There is always that one person at work with an overwhelmingly abnormal, unlimited source of energy and determination and you just don’t understand where they are getting it from? We have compiled a list of National and International Entrepreneurs to help give you some of this much needed inspiration and motivation! (more…)

Advice For Your Small Business

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What To Do With Your Money

    1. The first step is to make a spreadsheet. It is necessary to construct a spreadsheet prior to opening a business. This spreadsheet should include what amounts should be allocated to raw materials, rent, taxes, insurance, a marketing budget, staff wages and any other costs pertaining to your business. Remember that these are estimates and it is therefore advisable to cut some slack and make sure that there is more than enough money saved up for unforeseen circumstances. Do this before starting your new business, expanding your current business or taking on new employees.
    2. Another tip for your current business would be to cut costs where possible, relook at these every quarter or so, so that you are not losing out on money. Small business owners should draft budgets more periodically than bigger firms as business circumstances are more likely to change more frequently.
Small Business Advice
  1. Don’t be afraid to shop around for suppliers or services you need to outsource for your small business. Budget is the heart of a small business and its importance should never be overlooked or underestimated.

Set Goals

Every business needs goals regardless of where they are in the business cycle. We need goals to be able to succeed, grow and maintain enthusiasm for our businesses.

  1. It is important to define long-term goals and short-term goals. Start by jotting down all your dreams for your business, no matter how unattainable they may seem.
  2. The next step is to categorise these ideas, goals or priorities. You can base them on the SMART goal setting concept. This means setting goals that are specific, measurable, attainable, relevant and time-based.
  3. Now start to put this plan into action, remember, if you don’t map out a plan now, it will be difficult to see where your small business is going in the future!

“Chase the vision, not the money; the money will end up following you.”
–Tony Hsieh, Zappos CEO

Make Sacrifices

It is also important to note that small businesses require a lot of time and sacrifices in order for them to succeed. You may need to give up things like family time in order to put all your energy into your business, especially in the growing phases of the business life cycle. If you are planning on starting a small business, you need to be aware of the fact that it will require huge dedication. Is is also important to learn how to delegate some of the work, hire the right people so that they can share the work load with you. PATC can help with all your financial requirements, including the beginning phases of starting up a business. It makes sense to start with a business plan.

Your Business Plan

We all have big ideas for our businesses but the problem comes when we require the financial aid for these ideas. When you approach investors or banks to assist you, you need to present them with a professional business plan. This is like a CV that you would send to a prospective employer. PATC will help you with this business plan so that you do not need to feel overwhelmed with terms like; proposed site, start-up capital, collateral or security loans, interest rates, balance sheets, forecasted income statements, cash flow projection…and the list goes on!

Make an appointment so that we can guide you through the above process. The first +- 1 hour meeting is on us – we want to see you make a success of your business.

Related Articles

If you enjoyed our blog you might find the following articles useful:

Why Do Small Businesses Need An Accountant?

Business Plans

 

What is Non-Taxable or Exempt Income?

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“Non-Taxable Income” is term that is most commonly used, but the more correct term is “Exempt Income”. This is income which you receive which you are allowed to exclude from your Gross income and in so doing you do not get taxed on it. Examples include:

  • Dividends received from a South African source
  • South African interest received by non-resident
  • Foreign pensions
  • Workmen’s compensation benefits
  • Unemployment (UIF) benefits
  • Alimony and Maintenance benefits
  • Uniform Allowance – provided that the uniform as a condition of employment and clearly distinguishable
  • Bona fide scholarships or bursaries granted to assist someone to study at a recognized institution
  • Levies received by Body Corporates, club fees by Recreational clubs,
  • In addition to this list, some exemptions are partially taxable – terms and conditions apply:
  • Ship crews and employment outside SA – when the time spent abroad exceeds and accumulative 183 days and 60 days of which are spent away consecutively + +
  • All income must however, be declared to the South African Revenue Services.

This serves as a guide line only so please feel free to ask for more information from our team of professional accountants.

Tax Season 2014 Is Open

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Taxpayers…Did you know?

Not everyone needs to file an income tax return (ITR12).

1 July 2014 marked the beginning of Tax Season. From this date on, taxpayers can submit their Income Tax Return (ITR12) to the South African Revenue Service (SARS). The annual income threshold for submitting a tax return is R250 000.

What does this mean?

If you as a taxpayer are earning R250 000 or less before tax during a tax year (1 March to the end of February the next year), you may not have to submit an income tax return as long as you also meet the requirements listed below:

  • You earn a salary from only one employer (i.e. you get only one IRP5 or IT3A certificate)
  • You don’t have a car allowance, the right of use of a company car fringe benefit or any other form of income (e.g. interest or rental income)
  • You don’t want to claim any additional tax deductions (e.g. medical expenses, retirement annuity contributions or business travel expenses)

Good News

According SARS records from last year you may be one of those taxpayers who no longer need to submit a tax return to SARS – If nothing has changed in your tax affairs since last year, (and your income is still under R250 000) – you may not have to complete and submit a return to SARS this year! To check if this is you, visit www.sars.gov.za and use the wizard on the Tax Season page. If you have any queries or you don’t have access to the internet you can call the Contact Centre on 0800 00 SARS (7277).

*Tip

It’s 2014 and everything is done online now, (come on join the other 4.2 million efilers). You can do your efiling at any time and can do it on your mobile phone too. Register today at www.sarsefiling.co.za and follow the steps on how to do it on your mobile here. You will receive your own personal profile to deal with all your SARS business – including completing your pre-populated tax return, checking the outcome with the tax calculator and of course, submitting it. You will receive your assessment within minutes. You will also have access to a personal inbox where all notices and letters pertaining to your personal income tax will be available.

For any queries on your tax returns or any other enquiries please do not hesitate to contact PATC (Professional Accountants & Tax Consultants).

SARS New Disclosure Rules To Prevent Global Tax Evasion

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Last February 2013, the National Treasury and SARS started negotiating with the United States Department of the Treasury to introduce an inter-governmental agreement (IGA) with regard to the Foreign Account Tax Compliance Act (FATCA). Wording of a draft IGA has been agreed upon, and will be signed at government level soon. This will open up access to relevant information about our own tax investigations in South Africa.

Once the IGA has been confirmed, South African financial institutions will inform SARS, who will then exchange this information to the US under a legal framework, in accordance with the existing double taxation agreement that exists between the US & South Africa.

SARS has identified, through other international developments that using the automatic exchange of information to identify non-compliant taxpayers using foreign accounts, there can be a way to combat offshore tax evasion.

This brings us to the BRS “business requirement specification” that SARS would like to implement, which will require automatic periodic reporting of specific information from financial institutions, regarding all non-residents, not just US citizens under FATCA. SARS will then be able to share this information, with any of its alliances, on a reciprocal arrangement.

This shows that South Africa is part of leading the way to a global movement of tax transparency and the exchange of tax information, to secure trust and fairness in the international tax system.

Please note that SARS offers a voluntary disclosure program for South African taxpayers who have not yet regularised their position with regards to thier offshore holdings.

Please contact us at PATC if you have any queries or need assistance with your tax responsibilities.

 

The Launch of The Tax Ombud

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Minister of Finance Pravin Gordhan formally launched the Tax Ombud during the South African budget speech this 7th of April 2014. The aim of the Tax Ombud is to create an avenue where taxpayer’s legitimate complaints, about SARS service and procedure or admin issues, are addressed.

“The Tax Ombud is an additional and free avenue to deal with complaints by taxpayers that cannot be resolved through SARS’s internal mechanisms. The Tax Ombud’s office draws on comparable institutions in Canada and the United Kingdom”, as mentioned by Minister Pravin Gordhan.

SARS needs to accommodate the taxpayer’s complaints and try to resolve them using all their internal resources. Only then, if SARS can’t resolve the complaint, will the Tax Ombud get involved in investigating a resolution to the complaint.

The first Tax Ombud, retired Judge Bernard Ngoepe said, “The office operates independently of SARS, and also treats with strict confidence the communication between it and the taxpayer,” he added. “Given all these as well as other considerations, the office of the Tax Ombud expects to contribute towards boosting the taxpayers’ confidence in tax administration, resulting, hopefully, in even better tax compliance.”

The Tax Ombud reports to the Minister of Finance on an annual basis at Parliament, where the report is presented by the Minister.

If you have any tax queries or requirements please contact us at PATC.

Businesses That Turnover More Than R30m Per Annum

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If your business turnover exceeds R30 million per annum, or is reasonably expected to exceed R30m then you need to submit monthly VAT returns to avoid penalties from SARS.

As per Category C, VAT vendors with a turnover of more than R30 million per annum must submit their returns monthly, submitting 12 VAT returns per annum. However if the turnover of VAT vendors, that were a Category A or B, increases and exceeds R30 million per annum then the vendor needs to notify SARS in writing. If the VAT vendor fails to notify SARS, SARS will raise an interest charge and a 10% late penalty.

Speak to us at Professional Accountants & Tax Consultants. We’ll work closely with you to make the most out of your monthly returns, saving you time and money.

Credit Amnesty – Started 1 April 2014

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The updated Credit Amnesty allows consumers who are listed on the credit bureaus with relevant negative information to have this information removed from the records of the credit bureaus, as from the 1st of April 2014 and completely removed by the 1st June 2014, in accordance with Regulation 2 (b).

Regulation 2 (b): A registered credit bureau must remove detrimental consumer credit information and information relating to unpaid judgements as considered in Regulation 2 (a) with a period of two (2) months from the effective date of these regulations.

There are two parts to the credit amnesty information removal process:

  1.  Once-off removal
  2. On-going removal of information.

Once-off removal

 This removes all detrimental information (whether paid or unpaid), including:

  • Negative allocations of consumer behaviours such as ‘default’, ‘delinquent’ or ‘slow paying’,
  • Negative allocations of prosecution action, including allocations such as ‘legal action’ or ‘write-off’,
  • Negative status codes as shown on consumer payment profiles,
  • Elimination of paid-up civil court judgements where the consumer has settled the capital amount.

 On-going removal requirements

This is the on-going removal of all paid up judgements, as per the credit amnesty regulations, and paid up adverse information listings as per the National Credit Amendment Bill, which has not been promoted yet.

Consumers are not off the hook when it comes to their credit obligations. This credit amnesty is being put into place to remove certain negative records from the credit bureaus records, in regards to the way that they were previously managed.

Please contact us if you have any queries regarding the credit amnesty update.

South Africa’s Budget Speech 2014

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This year’s budget speech took place on the 26th of February 2014 and took various factors from previous years into consideration in order to formulate a clear plan for the future. Minister Pravin Gordhan acknowledged South Africa’s achievement in the last five years in light of the economic recession but emphasised that there is still a lot to do in order to achieve a new economic order and that this can only be achieved if the vision is shared by both South Africa’s leaders and its people. Minister Pravin Gordhan also stated that the global economic outlook remains unsteady with our country’s economy growing, albeit not as fast as previous years.

With this in mind, Minister Pravin Gordhan stated that we need to work together with labour, business and all stakeholders to move together in bold, new direction. This new direction focuses on factors that are important for transformation, that will create job opportunities, accelerate growth and build equality in South Africa. It was estimated that in order to make rapid progress in creating jobs and reducing poverty, South Africa’s economy needs to grow at 5% a year or more, and this can only be achieved with a clear vision and by working together.

Gavin Bacon, Owner of PATC

“If my clients obtain at least 5% growth in the new year, then they meet this projection which is “OK” but, with inflation leaning towards 6.5%, I am of the opinion that your business is in fact “going backwards”. My “rule of thumb” for targeted growth remains – at achieving at least 10%. If you can manage 12-15% – Great, anything above that – excellent / brilliant! Hard work, dedication and commitment can help achieve desired results. When times are hard – “get up earlier, go to bed later and work harder”. It WILL pay off in the end……” Gavin Bacon

This vision is planned to consist of various initiatives together with the implementation of the National Development Plan.

These initiatives will consist of: 216 000 houses being built and 905 000 houses being connected to electricity by the end of the MTEF period, an increase of children receiving child support grants to 11.4 million, 433 schools are to be built, an increase in support for entrepreneurs, small businesses and subsistence and small-holder farmers as well as an accelerated public infrastructure investment. These are a few of the initiatives envisioned that are focussed on growing South Africa’s economy and pushing us as a country forward.

This year’s budget seemed focused on a positive and clear future, one that would help our country grow, despite the still unsteady global economy.

Need assistance with your budget? Contact PATC today.